WORLD TRADE  
ORGANIZATION  TN/RL/W/231 
24 April 2008 
 (08-1950) 
Negotiating Group on Rules Original:   English 
  
 
DRAFTING PROPOSAL ON ISSUES RELATING TO ARTICLE V ("FISHERIES 
MANAGEMENT") OF THE FISHERIE S SUBSIDIES ANNEX TO THE  
SCM AGREEMENT AS PROPOSED BY THE CHAIR IN TN/RL/W/213 
 
Communication from Norway
 
 
 
 The following communication, dated 22 April 2008,  is being circulated at the request of the 
Delegation of Norway.1 
 
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1. Introduction 
1. The issue of fisheries management as a conditi on for subsidization has received considerable 
interest during the negotiations.  Va rious proposals were put forward by inter alia  Argentina2, Brazil3, 
Indonesia4, Japan & others5, and Norway6 
2. This paper addresses the Chair's text (TN/RL /W/213) on the above mentioned issue as a 
contribution to the further negotiations in the Ne gotiating Group.  Together with the comments and 
suggestions made in the Negotiating Group, they form the basis for the textual proposal set out below.  
We suggest that these amendments to Article V of Annex VIII of the Chair's text be made so as to 
provide Members with a better basis for fu rther negotiations regarding these issues.  
3. This submission is without prejudice to the view s we may have on other parts of the Chair's 
text. 
2. Fisheries management systems and fisheries management plans 
4. In the negotiations, both the concepts  of fisheries management systems  and fisheries 
management plans  have been put forward.   
5. While there are no generally agr eed definitions applicable to these concepts, in general terms 
a fisheries management system refe rs to the legal and institutional framework  put in place to ensure 
the long-term conservation and sustainable use of fisheries resources.7  A fisheries management plan, 
                                                      
1 This paper was submitted to the Negotiating Group as a room document in March 2008. 
 2 See the proposals for an Article X.2 in TN /RL/GEN/138 and later revisions, and 
TN/RL/GEN/151/Rev.1 
3 See TN/RL/W/212 p.3, and TN/RL/GEN/151/Rev.1 
4 See the proposed Article 5.5(a) in TN/RL/GEN/150/Rev. 2 
 5 See the communication from Japan, the Republic of Korea and the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu, in TN/RL/GEN/114/Rev.2, particularly Articles 1(a)(ii) and 5. 
6 See TN/RL/GEN/144, proposed paragraph 3. 
 7 See, inter alia, FAO Code of Conduct for Responsible Fisheries, paragraph 7.1.1, where such a 
general system is described: TN/RL/W/231 
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  however, is one of the tools  used by the authorities under such a sy stem, and is directly targeted at the 
management of a particular fish stock, a gr oup of fish stocks or a particular fishery.
8 
6. Every Member should have a fisheries management system in place that conforms to 
internationally recognized minimum standards.  To  ensure that subsidization does not lead to 
overcapacity and overfishing, however, it is necessary to relate the effect of a pa rticular subsidy to its 
impact on the fishing effort in respect of one or more  particular fish stocks.  In our view, this implies 
that it is necessary to have management plans that  target the particular fish stock(s) that the 
subsidization relates to in order to ensure that th e subsidy does not lead to overfishing (i.e. an uptake 
above sustainable levels). 
7. A fisheries management plan can include a nu mber of measures to ensure that overfishing 
does not take place.  While not all measures are necessary or appropriate for the management of each individual fish stock, certain measures are a sine qua non to avoid  overfishing.  These are:  
(a) "regular science based stock assessment", so that  precautionary reference points can 
be established, and to regularly monitor the development of the stocks.  Such reference points set boundaries which are inte nded to constrain harvesting within safe 
biological limits within which the stocks can produce long-term maximum 
sustainable yield;
9 
(b) Stock-specific management strategies for th e measures to be used to maintain or 
restore the harvested stock at levels consiste nt with the precautionary reference point.  
Such strategies shall ensure that targ et reference points are not exceeded;  
(c) Stock-specific management plans that allo cate quotas within a Total Allowable Catch 
(TAC) determined for each year, or other similarly effective measures that  constrain 
the harvesting within safe biological limits; and 
(d) Control, enforcement and compliance me asures, to ensure that the quotas are 
respected by the fishing vessels. 
3. Explanation of the proposed amendments to the Chair's text 
8. The Chair has in TN/RL/W/213 suggested a number of elements in Article V.1.  We believe 
that this proposal goes in the right direction.  Be low we suggest certain modifications to the Chair's 
draft Article V.1.  The purpose of these amendments  is to set out more clearly the obligations 
                                                                                                                                                                     
7.1.1 States and all those engaged in fisheries management should, through an appropriate policy, legal 
and institutional framework, adopt measures for the long-term conservation and sustainable use of fisheries resources. Conservation and management measures, whether at local, national, subregional or 
regional levels, should be based on the best scientific evidence available and be designed to ensure the 
long-term sustainability of fishery resources at levels which promote the objective of their optimum utilization and maintain their availability for present and future generations; short term considerations 
should not compromise these objectives. 
 Fisheries management systems are also addressed in the Agreement for the Implementation of the 
Provisions of the United Nations Co nvention on the Law of the Sea of 10 December 1982 Relating to the 
Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks.  
8 Certain management tools are also addressed in the 1993 FAO Agreement to  Promote Compliance 
with International Conservation and Management Measures by Fishing Vessels on the High Seas. 
 9 See the Agreement for the Implementation of the Provisions of the United Nations Convention on the 
Law of the Sea of 10 December 1982 Relating to the C onservation and Management of  Straddling Fish Stocks 
and Highly Migratory Fish Stocks, where Annex II contains guidelines for the application of precautionary 
reference points in conservation and management of straddling fish stocks and highly migratory fish stocks.  TN/RL/W/231 
 Page 3 
 
 
  Members have to live up to in respect of the variou s elements that are necessary to ensure that any 
subsidization that is permitted does not result in ove rfishing.  For that purpose we also suggest to 
"reformat" the Article and re-group the el ements contained in the Chair's draft. 
9. We consider that Members should have as an " over-arching" obligation to operate a fisheries 
management system that creates the legal and institutional framework  to ensure the long-term 
conservation and sustainable use of fisheries resources.  The framework must be complemented by 
stock-specific management plans for each  fishery th at is or will be subsid ized, and other measures 
that ensure that non-stock-specific subsidies do not result in  overfishing. 
10. We, therefore, suggest to focus on fisheries management systems in Article V.1.  The 
provision suggested below is almost identical to th e first two sentences of the Chair's proposal, but we 
suggest to format the provision differently.  We  have also included the management measures 
suggested by the Chair as optional elements for any management system.  Such measures may be 
necessary and appropriate for some but not all management plans 
11. We, thereafter, suggest to specify the obligations relating to stock-specific measures in 
Article V.2.  For this provision we suggest to create a direct link between subsidization and the 
targeted fish stock.  Such a direct link was not pr esent in the Chair's text, but we believe that it is 
useful.  If a subsidy targets e.g. tuna fisheries, it is for such fish-stocks that management plans are 
required, and not for stocks unaffected by the subsidy. 
12. In Article V.2 we also suggest to specify certain minimum requirements (e.g. science-based 
reference points for each stock concerned) for fisheri es management plans.  We suggest that the focus 
of the obligation be on the result to be achieved, i.e. that a subs idy shall not result in overfishing, 
rather than prescribing each and every measure that ma y be employed to reach that goal.  In addition 
to the specific requirements set out in Article V.2,  it will normally be necessary to also have in place 
some or all of the management measures listen in Article V.1.2 
13. For non-stock-specific subsidies we suggest a more general reference to the obligation to 
ensure that such subsidies do no contribute to overfi shing .  We are also looking at whether subsidies 
for purposes such as "re-education" and "early retirement"10 should only be subject to Article V.1 and 
not Article V.2, and have suggested langua ge to that effect in Article V.2.6.  
14. We suggest to move "enforcement" to Article  V.3, and specify more clearly what the 
enforcement measures shall achieve. 
15. In respect of the notification requirements to the FAO and to the Committee on Subsidies and 
Countervailing Measures, we suggest that the mana gement systems be notified to the FAO and the 
management plans and corresponding subsidies to th e Committee pursuant to Article VI.  We have 
not included prior "peer review"  in the text belo w due to the strong opposition voiced by Members at 
the February meeting, but we favour a WTO "TPR- like" mechanism for fisheries subsidies, where a 
Member's subsidization will be subject to scrutiny at regular intervals, and would recommend further 
discussion on such a mechanism.. 
16. Finally we have moved  the Chair's proposed ob ligation to have an enquiry point into new 
Article V.5, but kept the language unchanged. 
                                                      
10 See Article II(c)(1) and (2) of the Chair's proposal. TN/RL/W/231 
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  Annex – Suggested modifications to the Chair' s proposed Article V (Fisheries Management)
 
Article V 
 
Fisheries Management11 
 
V.1 Any Member granting or maintaining an y subsidy as referred to in Article II or 
Article III.2(b) shall operate a fisheries manage ment system regulating marine wild capture 
fishing within its jurisdiction, designed to pr event overfishing and that ensures the long-term 
conservation and sustainable use of fisheries resources.12   
 
1.1 The fisheries Such  management system shall be ba sed on internationally-recognized 
best practices for fisheries management and conservation  as reflected in the relevant 
provisions of international instruments for the long-term conservation and sustainable 
use aimed at ensuring the sustainable use and conservation  of marine species  fisheries 
resources , such as, inter alia ,  
 
i. the United Nations Convention on the Law of the Seas  
ii. the UN Fish Stocks Agreement ,  
iii. the FAO Code of Conduct for responsible fisheries ,  
iv. the 1993 FAO Compliance Agreement , and  
v. technical guidelines and plans of actio n (including criteria and precautionary 
reference points) for the implementation of these instruments, or other related or successor instruments.   
 1.2 The fisheries management system shall, as appropriate, include:
 
 
i. a system comprising authorization to fish ( inter alia fishing permits, fishing 
licenses and vessel registries) harvesting l icenses or fees; vessel registries  ; 
ii. establishment and allocation of fishing possibilities rights , or allocation of 
exclusive  quotas to vessels, individuals and/or groups,  and related  
enforcement mechanisms ;   
iii. single- or multi-species regulations and/or quotas species -specific quotas,   
iv. restrictions on the use of fishing gear, closed seasons and/or areas  seasons  and 
other stock management measures;  
v. vessel monitoring and catch control systems,  which could include electronic 
tracking and on-board observers;   
vi. systems for reporting in a timely and reliable manner to the competent 
national authorities and relevant intern ational organizations data on effort, 
catch and discards in sufficient detail to allow sound analysis;  and 
vii. research and other measures related to  conservation and stock maintenance 
and replenishment.   
 
V.2 Any Member granting or maintaining an y subsidy as referred to in Article II or 
Article III.2(b) shall, for each fishery and/or fish stock for which the subsidy is directed, 
                                                      
11 Chair's footnote 84:   Developing country Members shall be  free to implement and operate these 
management requirements on a regional rather than a national basis provided that all of the requirements are 
fulfilled in respect of and by each Member in the region.   
12 Explanatory footnote:  The additional language mirrors more closely the FAO Code of Conduct.  The 
importance of this addition is that the system should not only be designed to prevent overfishing, but should also 
be implemented and enforced  so that overfishing is effectively avoided on a long –term basis   TN/RL/W/231 
 Page 5 
 
 
  implement a fisheries management plan designed to prevent overfishing of that particular fish 
stock.  
 2.1 The fisheries management plan
 system  shall include  be based on a regularly updated  
science-based stock assessment including precautionary reference points for that stock  
or best biological information available as well as capacity and effort management 
measures . 
 
2.2 The fisheries management plans that include science-based stock assessment, shall 
include the establishment of fishing mortality  rates that will ensure that the fishing 
will be kept within the relevant precauti onary reference points for that stock.  
 
2.3 The scientific basis for the management  plan shall have been approved by an 
internationally recognised, competent management or scientific body.13 
 
2.4 The fisheries management plan shall include capacity and effort management 
measures that constrain harvesting within safe biological limits, either  through the 
allocation of quotas within a Total Allowabl e Catch (TAC) determined for each year 
or through the application of other simi larly effective stock management measures.  
 2.5 Each Member shall ensure that non-stock-specific subsidies do not result in 
overfishing.  Where a subsidy relates to more than one fishery or fish stock, a 
management plan is required for each fish stock affected by the subsidy.  
2.6 Subsidies referred to in Article II(c) sh all only be subject to paragraph 1 of this 
Article.  
V.3 To this end, the  To ensure compliance with the provisions set out above,  each Member shall 
adopt and implement p ertinent  necessary domestic legislation and administrative or judicial 
enforcement mechanisms.   
 
It is desirable that such fisheries manageme nt systems be based on limited access privileges14.  
 V.4 Information relating to the obligations set out in V.1 and V.2 
as to the nature and operation of 
these systems, including the results of  the stock assessments performed,  shall be notified to the 
relevant body of the FAO,  where it shall be subject to peer review prior to the granting of the 
subsidy15.  Each individual subsidy or subsidy pr ogramme, as well as the relevant fisheries 
management plans, References for such legislation and mechanism, including for any modifications 
thereto, shall be notified to the Committee on Subsidies and Countervailing Measures ("the 
Committee") pursuant to the provisions of Article VI.4.   V.5 Each Member shall maintain an enquiry poi nt to answer all reasonable enquiries from other 
Members and from interested parties in other Members concerning its fisheries management system, 
                                                     
 
13 Proposed new footnote:  Such bodies include the scientific/biological bodies of a number of Regional 
Fisheries Management Organisations, and the Advisory Committee for Fisheries Management (ACFM) of the 
International Council for the Exploration of the Seas (ICES), and nationa l research institutes..  
14 Chair's footnote 85:   Limited access privileges could include,  as appropriate to a given fishery, 
community -based rights systems, spatial or territorial rights systems, or individual quota systems, including 
individu al transferable quotas.   
15 Chair's footnote 86:   If the Member in question is not a memb er of the FAO, the notification for peer 
review  shall be to another relevant international organization.  The specific information to be notified shall be 
determined by the relevant body of the FAO or such other organization.   TN/RL/W/231 
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  including measures in place to address fishing capacity  and fishing effort, and the biological status of 
the fisheries in question.  Each Member shall no tify to the Committee contact information for this 
enquiry point.    
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